Telkom ramps up data center expansion, seeks strategic partner
PT Telkom Indonesia is expanding its data center business through organic growth and strategic partnerships, including a potential sale of a majority stake in its data center subsidiary by the end of 2026.
Telkom Indonesia is aggressively expanding its data center business through both organic growth and strategic partnerships, with the possibility of a majority stake sale in its data center subsidiary by the end of 2026. The company's director of wholesale and international services, Budi Satria Dharma Purba, announced that the search for a strategic partner is now in the evaluation stage, with binding offers potentially involving a majority stake divestment.
Purba emphasized that this partnership is expected to bring operational capabilities, market access, and relationships with hyperscalers, enabling Telkom to accelerate expansion while sharing investment costs. Any profits generated from such a partnership could be redirected towards strengthening the company's core businesses, improving its balance sheet, or potentially supporting shareholder returns.
As Telkom expands its data center footprint to meet growing digital infrastructure demand, the company currently operates with 49.9 MW of effective data center capacity across the group, and PT Telkom Data Ekosistem revenue (NeutraDC) rose by 11 percent year-on-year to Rp 867 billion in the first half of 2026. Telkom's Cikarang data center, with 15.5 MW of effective capacity and 96 percent occupancy, is set to expand to 21.5 MW in the first phase, with the second phase commencing in 2027.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
